A 2017 National Association of Realtors study found that the largest segment of the home buyers are 36 years of age and under. They actually make up 34% of all home buyers, and 60% of this segment are first time home buyers.
In places like San Diego, CA this creates an interesting predicament. Over the past 6 years in San Diego, our housing market has seen tremendous appreciation. In fact, in 2018, the average single family home in San Diego, CA is trending around the mid-$500,000’s.
Fueling this increase in home prices is the lack of inventory. San Diego is a city that is landlocked by the Pacific Ocean, Mexico,C amp Pendleton, and the eastern mountains. There just isn’t room to build new homes.
Many first time homebuyers in San Diego looking to get into the housing market find the barrier of entry to be incredibly difficult. Many are left using all of their savings for the down payment to get into the home, downgrading in quality of place (from what they were renting), and then not having savings to renovate the home.
This is where the Fannie Mae HomeStyle Renovation Loan comes in. This loan enables borrowers to get into an older home that needs renovation, and finance the cost of that renovation in the loan. When all is said and done, the buyer is able to get into a newly renovated home that they otherwise would have never been able to afford.
It’s the perfect solution for the current market. For more information of how this Fannie Mae HomeStyle Renovation loan works, feel free to search the blog and watch the videos.